Comments about real estate, economy, and issues that affect my job as a Realtor.
Lately, of great importance is the display of the most important
PRE-CONSTRUCTION PROJECTS IN SOUTH FLORIDA.
My name is Henry B. Nathan
I am a realtor at United Realty Group.
My phone # is 954-296-6741

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Tuesday, April 29, 2008

On North Bay Road, a few steps from the beach, a coveted location in Sunny Isles, Porto Bellagio is a good option. Prices have dropped from the highs of 2005 and you can find here some very reasonably priced condominiums.

The City of Sunny Isles Beach has gone through drastic changes in less than a decade. From a long strip of motels, built in the 50's, it is now home to some of the most luxurious high rise condos in the Miami area.Almost overnight, million dollar oceanfront apartments, fashionable shops, cafes and restaurant have made Sunny Isles one of the most fashionable and coveted locations in South Florida.

Large condominiums, built in the 70's, such as Winston Towers, coexist with the new giant structures: Ocean I, Ocean II, Ocean III, Ocean IV, Acqualina, Trump Grande, the Trump Towers, Turnberry Ocean Colony, are just a few in the growing skyline.

During the last few years property values have greatly increased in Sunny Isles.Sunny Isles Beach population is estimated at more than 15,000 people.

A plethora of ethnic stores - a result of the perpetual melting pot phenomenon - line the shopping centers along Collins Avenue. The blend of wealthy tourists, South American, European visitors and immigrants, and the traditional snowbirds configure an incredibly diversified population.

Throughout its recent transformation, Sunny Isles has maintained much of its original charm. The famous Rascal House is gone but the fishermen are still at the Newport Pier, and the beachwear stores, the nonchalant walk of beach attired youngsters along Collins Avenue, remind the residents that the spirit is the same.

Sunday, April 27, 2008

A real estate agent, checking on a Boca Raton home in Foreclosure, discovered them in the backyard: two 7-year-old mixed-breed spaniels, deliberately left behind by the former owners. The family left a note, including the name of their pets' veterinarian.

"Our owners lost their home and had to move. They could not take us with them."

That's the sign hanging on Sami and Danni's kennel at the Tri-County Humane Society in Boca Raton. The staff hopes someone soon will adopt both dogs, sisters together since birth.

Pets are emerging as the hidden victims of the housing crisis in South Florida, which has one of the highest Foreclosure rates in the nation. Animal welfare organizations are bracing for a flood of requests and abandonments as the housing downturn continues to drag on. They are particularly concerned about older animals, whose more expensive veterinary care may be too much of a burden in a slow economy.

"When times are hard for people, they frequently are hard for pets as well," said Nancy Peterson, issues specialist with the Humane Society of the United States.

The Tri-County shelter is at capacity, with 350 animals. But five or six calls a day continue to come from people who are moving but can't take their dogs, and 40 more from pet owners wanting to surrender their cats.

The Peggy Adams Animal Rescue League in West Palm Beach, which takes in animals referred by Tri-County, has added a category to a database that tracks why people surrender their pets: Foreclosure.

Last month, four pet owners said Foreclosure was the reason they were giving up their animals; another 56 cited "moving" and 11 more said they were "unable to find housing" that allows pets.

"Some people treat their animals like they are an old TV set or a couch. They're moving on and they can't wait to get rid of them," said Executive Director Joan Carlson Radabaugh.

But for others, "it is really heartbreaking," Radabaugh added. "They have lived with their animals for years and they love them."

In some cases, homeowners facing Foreclosure panic when they can't find a rental property that allows pets. Others must move in with family members who don't have room for Fido or Fluffy.

"We are hoping, in the future, to identify people who are in crisis and find [their pets] foster homes on a short-term basis," Radabaugh said. "And we need to show landlords that there are ways they can permit pets responsibly."

Instead of leaving their pets, animal welfare advocates and veterinarians urge owners to try to find temporary homes for them with family or friends. If all else fails, surrendering them to a rescue group or county shelter gives the animals a chance of finding a new home. The worst option: abandonment.

Officials with South Florida animal welfare groups and county shelters say it is hard to determine the effects of Foreclosures, as owners don't have to give a reason when they bring in their pets. They suspect many who are losing their homes simply say they are moving.

But Broward County Animal Care and Regulation, like the league, is adding "Foreclosures" to its surrender database to help them determine the scope of the issue.

The number of animal abandonment calls to the county related to evictions rose last year to 267 calls, compared with 198 in 2006. The shelter also gets stray animals that may be Foreclosure victims, said Acting Director Beth Chavez.

Palm Beach County Animal Care and Control also saw an increase in the number of surrenders toward the end of last year, as the housing market worsened. There were 1,599 dogs and cats brought to the shelter by their owners from Oct. 1 through Dec. 31, 2007, compared with 1,406 animals during the same period the year before. But officials said they did not know how many animals were brought in because of Foreclosure.

The first reports of a Foreclosure pet crisis to reach the Humane Society of the United States came late last year out of California, which has the nation's highest Foreclosure rates. South Florida is close behind. According to the Realestat.com research firm, 1,700 Palm BeachCounty homeowners and 2,200 in Broward were at least 90 days behind on their mortgage payments in February and close to Foreclosure. That was double the number in February 2007.

The American Veterinary Medical Association became alarmed at reports of animals being found in vacant houses, near starvation or dead. In some cases, Foreclosure proceedings were delayed and the pets had been locked inside for days. The association, the nation's leading authority on companion animal health, issued a statement this month, asking homeowners not to leave their pets or drop them on their veterinarians' doorsteps.

"It really disturbed us that people are doing this. These people are abandoning their animals under extraordinary circumstances," said Dr. Kimberly May, the association's assistant director of professional and public affairs.

The Humane Society of the United States has announced a new "Foreclosure fund," seeded with $15,000. Local shelters can apply for grants of $500 to $2,000 toward programs helping financially strapped families keep their pets.

"Moving always has been a major reason why people surrender their pets," Peterson said.

Friday, April 25, 2008

The Florida House could possibly approve today a change to the landlord-tenant law.

It would allow the landlord to charge a penalty of up to two months of rent as a "termination fee".

The present laws allow landlords to charge up to the "actual damages" if a tenant breaks his lease. The landlord can sue to collect the rent until he finds a new tenant.

Some legislators consider the new bill as "consumer-friendly" because it will give to tenant a guaranteed maximum penalty.Renters would have the option to accept or reject the two-month maximum penalty at the time of signing their contract.

The bill is likely to be approved in both chambers. Governor Crist has vetoed a similar proposal last year, but would possibly reconsider the veto since "a new language offers more protection to the renter", since the renter could choose whether or not to accept the early-termination fee at the time of the contract execution.

Some renters could benefit from the two-month penalty. If they are in a low-occupancy rental community, the landlord could continue to charge rent for a long time until he finds a new tenant.

In essence, when signing the lease, the tenant would have to decide in which direction he wants to go.

It's on. On November 2008, we will vote on a ballot proposal to cut property taxes by about 25 percent. 60% of voters should have to vote yes to pass the amendment.

It would apply not only to homeowners but also to businesses, second homes and commercial buildings. The lost revenue should have to be replaced by new taxes and existing taxes raises to be decided by our state legislators. We are talking about 9.5 billion dollars.

It would also establish a 5 percent cap on yearly assessment increase for non-homestead properties – businesses, investment, and second homes. In January 2008, voters have already approved a 10% percent cap.

The Taxation and Budget Reform Commission voted 18-7 to confirm the plan which was approved last month, mandating a cut of school property taxes in about $ 9.5 billion by the year 2010.

The main opposition to the plan has come from business lobbying groups, like the Florida Retail Federation, who threatened with a lawsuit to block it, and some legislators who argued it would lead to a huge tax increase. In effect, the amendments actually mandate a tax increase. The president of Associated Industries of Florida which represents most Florida large companies, affirmed that there was a "99 percent certain there will be a legal challenge" to try to block it from the ballot, and that it was "the biggest scam since the Florida lottery, being sold as a decrease of taxes when, who knows what it'll be?"

The tax swap of the education spending recourses that must be replaced by the new sales tax raises will go up to $ 11 billion, since it includes a provision to increase by 7.5 percent the K-12 spending for the next two years. Other critics of the plan affirm that this is another case of irresponsible improvisation or "creativeness" that, under the cover of helping property owners, will ultimately overburden those who can't even afford to buy a home.

Under the proposed amendment, Florida legislators will have to replace the schools revenue with some combination of raising the sales tax by one percent, doing away with sales-tax exemptions given to many industries, cutting spending, or levying new taxes.

Add to this proposal, another one that the legislature is considering, about capping property taxes to 1.35% of assessed value, supported by Marco Rubio, the Republican House Speaker.

Enough to get you dizzy? Of course. As long as you ignore the main issue. Cutting taxes, raising taxes, swapping taxes, cutting services, raising services costs, there are so many different ways to ignore a fundamental principle which is right in your eye: "You can't spend more than what you can afford". Our cities, our counties, our local governments are us. If we cannot limit their spending, we will have to pay for it.

They are spending too much, compared to what their more conservative policies had been in the past. All the new construction that has been approved by all our cities under the motto: "increase the tax base", has brought a large additional revenue that should have been more than sufficient to offset any additional services that they could be giving us.

A reasonable increase of our taxes in the same proportion as inflation during the last decade would have added enough recourses to these revenues.

If we are living in an unrealistic world of dozen of unnecessary cities, administrations, public servants, government pensions, bureaucracy, and what more, the only remedy is to reconsider this whole equation and adjust it.

Our middle class is suffering. Our economy, nourished in part by snowbirds and tourists is suffering. Real estate is at its lowest point in decades.

One of the main factors is high property tax, as are the high costs of property insurance in Florida.

It is time to address these issues honestly and with a vision to the future; Playing with tax-swapping, tax capping, tax cutting, tax increasing, is a dangerous game and a cul-de-sac avenue. Addressing the problems with a more efficient, honest and conservative handling of our public spending is the one and only alternative.

As would be my alternative if I had to balance my personal home budget with a fixed salary. I would have the choice of going deep in debt, or maybe try to rob my neighbors and go to jail, or reduce my standard of living, or live in a smaller home, eat less or starve a bit, or find a second job at night, or cut on my leisure expenses, or whatever you can imagine. But would I be able to play with my budget the way our elected representatives are doing?

Of course not; Because, as you guessed, I would end up bankrupt, insolvent, broke, bust, you name it.

Tuesday, April 15, 2008

On April 14, 2008 the Florida Tax Commission voted against a proposal to establish caps on government spending, or impose a "super-majority" vote when levying new taxes.

The presence of angry home and business owners, worried about their soaring property taxes, failed to curb the resistance. Their insistence, during hours of discussion and testimonies, to rein in the free spending of counties and cities, or to require a majority of two thirds vote for tax raises, had no effect and the resolution will not make it into the next November ballot. Both propositions were defeated in the Tax and Budget Reform Commission by a 14-9 vote.

There is another citizen-led "cut-property-taxes-now", which is trying to put on the 2010 a constitutional amendment which would cap property taxes at 1,35% per year on any property's assessment.The Legislature is also considering placing a similar proposal on November 2008 ballot.

In a bit cryptic statement by Jim Scott, a former state Senate president and BrowardCounty commissioner, the proposals that failed to rally enough support on the commission Monday were a "one-size-fits-all solution unworkable in South Florida".He added:

"To say this commission is going to determine what people spend ... they didn't give consideration to areas like Broward and Palm Beach counties, which have to deal with a large number of immigrants". Scott, is the vice chairman of the commission.

Another puzzling affirmation by former state Senator Les Miller from Tampa:

"No one here knows what is in this," former state Sen. Les Miller of Tampa said. "I was taught, when in doubt, vote no."

Opponents and supporters of the tax ceiling were allowed by the commission to testify Monday. Against the proposal were the AARP and the Florida School Boards Association. Supporters: the Florida Association of Realtors and Dory Kilburn, a resident of Crown Colony in Ocean Ridge, who represented the Boynton Intracoastal Group, a coalition of condos, home to many retirees.

Kilburn, a Canadian snowbird said: "You know how they say snowbirds are wealthy? Well, most of them live in small one-bedroom condos or mobile homes. They came to Florida decades ago, when it was affordable. Well, it's not affordable anymore."

Some of the opposing votes on the commission were based in the fact that the commission has already agreed to put a proposal on November's ballot. If approved, it would eliminate the property tax that now funds public schools and mandate the Legislature to come up with replacement funds while capping increases in the assessment of all non-homesteaded properties at 5 percent a year.

That proposal, which must be approved by 60 percent of Floridians voting to become law, calls for the Legislature to adopt up to 1% increase in the state sales tax along as well as other measures, such as spending cutbacks and the elimination of some service sales tax exemptions. Some commissioners considered that the revenue-cap measure debated Monday would require the Legislature to meet the two-thirds vote threshold to offset the loss of school property taxes, and that could be a difficult task which could jeopardize schools budgets.

If the school property tax is eliminated, the state will lose more than $9 billion in public school funds. The 1% increase in the sales tax will raise about $3.9 billion, and the Legislature would be challenged to find a way to raise the $5.1 billion balance.

Legislators asked the commission to suggest them how to get these $5.1 billion, and the Senate Finance and Tax Committee has scheduled a public hearing on the issue Friday.

With all due respect: as we suspected they would, the powerful tax commission has addressed the problem by trying to swap property taxes with sales taxes. But the real subject which is: "why should local governments be allowed to adjust taxes to their fit their budget?", instead of adjusting their budgets to fit reasonable taxes" has once again been ignored.

I recently read this article in the Sun Sentinel, reproduced from the Associated Press - Apparently, what started as an effort to relieve distressed homeowners, will end up being another tax break for big business.

Sadly, what initiated the whole thing, which is alleviate homeowners plagued by high-interest mortgages, was quickly forgotten or dismissed in the process.

HOMEOWNERS SHUT OUT

Measure offers no foreclosure aid

By ANDREW TAYLOR | The Associated Press

April 11, 2008

WASHINGTON - The Foreclosure Prevention Act passed by the Senate on Thursday doesn't deserve the title. Just ask its author.

The measure is a bipartisan package of tax breaks and other steps designed to help businesses and homeowners weather the housing crisis, but it has nothing to offer people who can't afford their mortgages or owe more on their homes than they're worth.

"Quite candidly, what we've done does not quite live up to the title," said Sen. Chris Dodd, D-Conn., chairman of the Senate Banking Committee and the measure's top sponsor. "We have more work to do. We do not do enough in preventing more Foreclosures in the country."

The bill passed by an impressive 84-12 vote, but even supporters such as Dodd acknowledge it's tilted too much in favor of businesses such as home builders.

The plan combines large tax breaks for homebuilders and a $7,000 tax credit for people who buy foreclosed properties, as well as $4 billion in grants for communities to buy and fix up abandoned homes.

The measure will be significantly redrawn by House critics who say it favors business over borrowers.

Democrats failed to win approval of ideas such as giving people threatened with losing their homes the right to seek more favorable loan terms from their lenders in bankruptcy courts. At the same time, a proposal to have the government back up refinanced loans for people facing Foreclosure has yet to win GOP support.

The White House opposes the plan but has not issued an explicit veto threat. It says parts of the legislation would make the problem worse by depressing some home values, and that the measure inappropriately uses taxpayer money to bail out lenders saddled with foreclosed houses.

The House is likely to reject key portions of the Senate measure, including $25 billion over three years in tax breaks for money-losing businesses such as home builders. A plan adopted Wednesday by a key House panel dropped that idea as well as the tax credit for purchasers of foreclosed homes.

Rep. Barney Frank, D-Mass., the Financial Services Committee Chairman, said the tax credit was "like paying a dog to eat a bone," and called the business tax break "a mistake."

Senate Majority Leader Harry Reid, D-Nev., acknowledged that changes will be needed in upcoming talks with the House and the White House.

"This is just the beginning of the process," Reid said. "This bill will go to the House. With the House and the White House we can come up with a piece of legislation fairly quickly."

Sunday, April 06, 2008

HeronPond offers 1, 2 and 3 bedroom units that combine top of the line features with an appealing decor. Kitchens are equipped with dishwashers, garbage disposals, energy efficient refrigerator, washer and dryer.

Linen closets and additional storage space are provided. Private balconies, patios or sunrooms and large bay or floor to ceiling windows are available.

Easy access to higher education at NovaSoutheasternUniversity and BrowardCommunity College .

All units will be delivered fully upgraded with new kitchens, bathrooms, appliances, floorings. Please ask about the details.

The property is FHA approved and the developers will contribute to down payment assistance, closing costs, and will pay the first 6 months of the HOA fees (maintenance fees). That would allow a potential buyer to purchase with very little money down.

Saturday, April 05, 2008

How many times do I hear the same questions? How long it's going to take? What is my forecast on Florida real estate?

I deal every day with different types of buyers: the investor, the vacation home buyer, the first-time home buyer, the luxury home buyer, the curious, you name it.

They will all have different approaches. For example:

Ideally, the investor would like to rent and cover totally or a significant part of his monthly mortgage costs, his insurance, maintenance or condo fees, and his taxes.

The vacation home buyer wants to keep his monthly payments under control, because by definition he is looking to have fun with his purchase, and not to create himself a new source of headaches. He adds the mortgage payments, the condo fees (because they are usually interested by condos), and the property taxes. And he will compare that to renting a good hotel room or suite for a couple of weeks or even a month.

The "empty nesters", which are in retirement age, and trying to downgrade to a smaller place, once their kids are gone, are a special case. They have been helped by the "portability" feature now added to their 'save our homes' protection. Typically they will pay less property tax if they move. However, many of them have lived in homes where they can somehow control their maintenance expenses. Moving to a condominium building means monthly charges as a lump sum, plus eventual "assessments" charges for repairs or upgrades to their condo building. These "condo fees" have sustained a relentless inflation during the last decade.

The first- time home buyer makes his calculations and unless he and/or his wife hold really great jobs, they could quickly find out that, after paying the mortgage, the insurance or condo fees, the property taxes, a purchase is simply out of the question. Renting is a much better deal.

Let's play with some figures.

You graduated five years ago from a good college; you hold a decent job. You are married, with a child, and your spouse is employed and brings some money to the table. Between both, you are making around $ 5,500 a month and that means that, after tax, you net about $4,600.

You have grown in a middle class family and are used to a certain level of comfort. But you have made your mind and your first home is just going to be a crowded two-bedroom condo. What's available in a decent neighborhood, (and I am not talking great luxury or new buildings on the beach) will cost you around $ 280,000. You were lucky enough to land a mortgage loan with only 3% down, and your savings allowed you to pay all the closing costs, and that's fine.

When you calculate your total home related monthly payments, you reach a figure of $ 2,500 per month. That doesn't include your electricity, phone, cellulars, and other utilities. Let's calculate all these in about $220. You won't have TV cable or internet at home. You can't afford it and after all, TV is not good for the kid, and you have enough internet exposure at work.

On the other hand, even though you have a health insurance plan, subsidized by your employer, you might have to fork out your part of about $250 or $300 a month. From time to time, you must pay a $10 charge to see a doctor, or something called "deductible", and even these expensive medicines for your kid's sore-throat infections; but we won't count that.

You also need two cars, because you both work, and these cars need insurance, tires, and other goodies. You have been reasonable, nothing fancy, but you still have to pay the monthly installments on both. So let's say that this would mean an additional $ 600 or $700 for both cars, all included. - except, of course, the gas. I was about to forget that! And at three dollar +, even for two small cars, it will mean another $150? $200? Ok. Say it's only $ 150. And you will change the oil and do minor mechanics yourself, and run on flat tires, not to overwhelm the budget. By the way, we forgot the college loans that, after all these years, you settled up to pay at about $200 a month.

We're already passing the $ 4,000 mark and we're just starting the month. You haven't eaten any food, you haven't bought any clothes or shoes; you haven't thought about vacations, restaurants, movies, continuing education, children birthday parties, or anything that can bring a little fun to your life, you haven't bought any furniture, gadget, nothing…And you haven't even put aside a penny.

While watching the shaky image of your antenna-powered TV, your spouse is ironing your shirt and the dress that you will wear at work tomorrow , trying to ignore the screams of the dear child who has spent all day in your mom's house –you can't afford private pre-school- and while cooking dinner, you are thinking that it's already the 20th of the month and in 10 days you will get a new batch of bills and invoices in the mail.

Should you have thought twice before buying this condo, instead of renting for around $1000 or 1200? You bet.

Now, how many young couples I know, are making more money than our friend? How many do you know who have a lower income?

The fact is that real estate is not only an investment. It's not a share bought in the stock market. It's not an IRA account, an annuity or a bond. It happens to be an essential part of the day by day life of our population. And, during the so called real estate boom years, there has been a greedy, unreasonable and unbearable raise in home prices which has not at all been matched by salary raises or income increases.

Remember before the last stock market crash in the year 2000, how new technology companies which had never earned a penny, saw their shares selling at incredibly high prices? The madness went on until eventually everything went back to normal and people went back to common sense. (or did they?). Can we compare that to what's happening with real estate? Why not?

Isn't it what we are seeing now? With the difference that so many homeowners who bought at high prices are stuck with high mortgages and can't even sell their little piece of heaven?

And the other half who refinanced and cashed out for a few years to maintain their lifestyle, only to found themselves with a negative equity?

Our local governments, our cities and counties have aggravated the problem by unrestricted spending, and while they affirm that they are seeking ways of easing the property tax burden without affecting anybody (which is of course impossible), home insurance premiums have skyrocketed, and no big relief is in the horizon, no change. Except for home prices. Because hardly anybody can buy them any more. Now you ask me when these prices are going to go up again; when people will start buying homes again, when we will be back to normal. Do you think I can perform magic?

Now let's take the vacation home case. There was a time when Florida was a place you bought a nice condo for sixty or a hundred thousand dollars. You paid some maintenance fees and taxes at a total of around two or three hundred dollars a month and you were all set. Today, you buy a two fifty or three hundred thousand little condo, you're stuck with assessments and condo fees of five hundred a month, then the taxman comes and it's another five thousand dollar bill to pay, and it just doesn't make so much sense. You will just look somewhere else or just forget about the idea.

Last but not least, our investor studied the case of the $200,000 dollar condo he was looking at, and pondered if the thousand dollars a month he would gross in the best case, if all things ran smooth and he had a great tenant, would be a suitable return when he must pay $1800 per month between mortgage, maintenance, taxes and assessments.

Pessimistic? I wouldn't be doing this real estate job if I didn't have some hope. Now if our legislators could mandate some hope in the people who buy, it would definitely help.

Tuesday, April 01, 2008

New Condo Conversion in Miami - Affordable Housing.

Oversized one and two bedroom condos from $ 109,000 to $ 190,000

The Ellington

Treat yourself with what a great lifestyle. Open the door to one of the residences and you’ll be astonished by the airy and spacious interiors that characterize The Ellington. With different floor plans to choose from, you can have not only what you need, but exactly what you want.

Oversized units with huge master bedrooms, closets, and sweeping views are just the beginning. The Ellington is also home to a state of the art gym, Olympic style pool, children’s playground, tennis courts, and an enjoyable barbecue area.

In the center of the vibrant city life and between both Broward and Miami-Dade, offers amazing shopping venues, and proximity to major highways and beaches.